Neutrality on M.R.P.

Press, Volume CXV, Issue 33934, 29 August 1975, Page 2

Neutrality on M.R.P.

(N.Z. Press Association) HAMILTON, Aug. 28. The Consumers’ Institute is adopting a “neutral” stance on the reintroduction of the maximum retail price scheme, despite warnings by food manufacturers that the scheme will increase food prices. “We can see several advantages in M.R.P., but we are aware that traders consider that there are quite a lot of dis-

advantages. Because we have no way of assessing the validity of their claims at present, we are taking a neutral position,” the director of the institute (Mr R. J. Smithies) said today. The institute was already fully committed to more than 50 separate consumer investigations. Earlier, the senior executive officer of the Grocery Manufacturers’ Association (Mr M. F. Daw-

son) called on the Government to finance an independent inquiry into M.R.P. by the institute. Manufacturers would be prepared to open their books to, such an independent inquiry to prove that M.R.P. would be costly to the consumer and detrimental to production efficiency, he said. Mr Dawson said an independent prices survey had shown that there was a

31 per cent food price differential at present between some supermarkets and seven - day - a - week shops. “if M.R.P. is introduced there will be a tendency for this gap to close, and the consumer will be charged more. The smaller retailers will charge the full maximum price. They will not have to mark their own price on goods.”